TORONTO, ON / ACCESSWIRE / April 15, 2014 / NTG Clarity Networks Inc. (TSX.V:NCI), today reported its year end results for the fiscal year ended December 31, 2013 (all figures in Canadian Dollars).
2013 continued the positive trend for NTG Clarity with record performance on all fronts. The Company reported a 111% increase in revenues and a 151% improvement in net income for the year. The majority of the increase resulted from new orders totaling over $9.5 million being booked in the final 9 months of the year. In addition, NTG significantly strengthened its balance sheet during 2013 with the successful completion of a convertible debenture financing which was subsequently converted to common shares prior to year-end.
Revenues for the year ended December 31, 2013 were $10,571,915 versus $5,002,537 for 2012. The gross profit margin was 46% in 2013 compared to 51% in 2012. The small decrease in margins was due to higher costing of some of the resources. The Company recorded net income before taxes of $1,947,314 or $0.062 per share in 2013 as compared to $776,688 or $0.026 in 2012.
General and administration expenses for 2013 were $1,117,671 as compared to $491,972 in 2012. Selling and marketing expenses were $866,681 compared to $634,423 and total other expenses were $1,151,093 compared to $562,835. Most of the increase in expenses was directly proportional to the increase in overall revenues. Some of the more notable changes in other expenses included a 38% increase in amortization to $349,155, a 97% increase in depreciation to $50,936, a 231% increase in foreign taxes to $67,426, a 756% increase in share based compensation to $513,261, and a 10% decrease in interest expense to $154,821. Share based compensation was significantly higher due to the granting and exercise of options.
NTG Clarity also continued to strengthening its balance sheet during 2013 which has been instrumental in the Company being able to acquire new work. Shareholders' Equity improved by 97% during the year to $7.26 million and long-term debt was eliminated. As at December 31, 2013, NTG Clarity had positive working capital of $4,444,547 or $0.12 per basic share.
------------------------------------------------------------------------------- |Income Statement Highlights for the Year Ended December 31, 2013 and 2012 | |-----------------------------------------------------------------------------| | |December 31, 2013 | |December 31, 2012 | |-----------------------------------------------------------------------------| |Revenue |$ 10,571,915 | |$ 5,002,537 | |-----------------------------------------------------------------------------| |Cost of Sales |5,686,900 | |2,458,750 | |-----------------------------------------------------------------------------| |Gross Profit |4,885,015 | |2,543,787 | |-----------------------------------------------------------------------------| |Operating Expenses |1,786,608 | |1,204,264 | |-----------------------------------------------------------------------------| |Other Expenses |1,151,093 | |562,835 | |-----------------------------------------------------------------------------| |Net Income |$ 1,947,314 | |$ 776,688 | |-----------------------------------------------------------------------------| |Per Share (basic) |$0.06 | |$0.03 | |-----------------------------------------------------------------------------| |(fully-diluted) |$0.05 | |$0.02 | |-----------------------------------------------------------------------------| | | | | | |-----------------------------------------------------------------------------| |Balance |December 31, 2013 | |December 31, 2012 | |Sheet | | | | |Highlights | | | | |-----------------------------------------------------------------------------| |Current Assets |$ 7,323,086 | |$ 3,361,927 | |-----------------------------------------------------------------------------| |Current Liabilities |$ 2,962,225 | |$ 2,354,576 | |-----------------------------------------------------------------------------| |Long-Term Debt |$ | |$ 82,986 | | | nil | | | |-----------------------------------------------------------------------------| |Shareholders’ Equity|$ 7,263,837 | |$ 3,725,448 | -------------------------------------------------------------------------------
NTG continued to develop and improve our existing suite of products and services during 2013 which has enhanced our customer satisfaction as well as our financial performance. Management is also building the necessary framework to expand our customer base outside of the Middle East and has made several quality connections in this regard.
NTG Clarity has started 2014 on a rapid pace with the announcement of agreements during the first quarter totaling more than $6 million. This is in addition to approximately 25% of revenues related to prior announcements still in its work backlog at the beginning of the year. Management is excited with the opportunities and prospects with which NTG enters a new year and expects to produce another year of record results for its shareholders.
About NTG Clarity Networks Inc.
NTG Clarity Networks' vision is to be a global leader in providing networking solutions. As a Canadian company established in 1992, NTG Clarity has delivered networking, IT and network enabled application software solutions to network service providers and large enterprises. More than 200 network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading network service providers and enterprises.
Forward Looking Information
Certain statements in this release, other than statements of historical fact, are forward looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature.
These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward looking statements should circumstances or management's estimates or opinions change.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For Further Information:
Doren Quinton, President QIS Capital
Ph: 250-377-1182
Fax: 250-377-1183
Email: [email protected]
SOURCE: NTG Clarity Networks Inc.